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TheBigFatJ said:
And at the end of September Sony said that the 40GB PS3 was "just rumor and speculation". While this isn't a flat out denial, it's technically a denial because they're saying it is only rumor and speculation, and therefore not real.

Microsoft called the 40GB PS3 back in July:

http://www.joystiq.com/2007/07/25/ngai-croal-vs-ms-attack-dog-in-ps3-bet/

Sony denied it back then. They also just recently said there will be no PS3 price drops this year. So they're obviously playing with words with the intent to mislead consumers. Most people would consider this a lie. Consider that it's like telling your spouse you didn't cheat on her with a girl when you actually cheated on her with two. You didn't lie, right? Wrong.

Sony loves lying to their customers. If they didn't, they wouldn't do it so often.

 so Sony stole the idea of a cheaper version using Microsoft's own attack. Oh well. Microsoft shouldnt have openned their mouth. 



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